Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30251
Authors: 
Neugebauer, Janett
Wesselbaum, Dennis
Year of Publication: 
2010
Series/Report no.: 
Kiel Working Paper 1608
Abstract: 
This paper investigates the role of staggered wages and sticky prices in explaining stylized labor market facts. We build on a partial equilibrium search and matching model and expand the model to a general equilibrium model with sticky prices and/or staggered wages. We show that the core model creates too much volatility in response to a technology shock. The sticky price model outperforms the staggered wage model in terms of matching volatilities, while the combination of both rigidities matches the data reasonably well.
Subjects: 
Search and Matching
Staggered Wages
Sticky Prices
JEL: 
E24
E32
J64
Document Type: 
Working Paper

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